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January 23, 2007
Infrastructure Crucial to Africa's Development
By Fortius Nhambura, The Herald (Harare) NEWS
AFRICA should strive to improve and maintain its existing infrastructure if
it is to increase its share and participation in the global economy.
In an interview last week, an economic analyst with the African Export and
Import Bank (Afreximbank), Dr Francis Mbroh -- who was in the country for
the signing of a co-operation agreement between Afreximbank and Agribank of
Namibia -- said Africa continued to lag in development because it lacked
both a culture of maintaining its infrastructure and a vision to grow and
progress.
He said the economic problems that the continent was facing presently
bordered on the fact that Africa had not maintained infrastructure that it
inherited from colonial powers.
The continent should have used the various networks and grids, plant and
equipment to increase its global economic share, which has been going down
for the past half century.
Africa currently contributes less than 5 percent of the world's gross
domestic product.
"This is our main setback that has resulted in Africa's economy failing to
contribute much to the world despite having most of the world's natural
resources. African standards have plummeted simply because those who have
inherited African business lack the vision to develop these enterprises.
"It is sad to hear that Africa in the 1950s used to contribute three times
what South Korea was producing, but look at the vast differences existing
now. What is needed now is to create an atmosphere that gives people the
will to improve," said Dr Mbroh.
He said many promising business ventures on the continent had either folded
or closed shop due to lack of acumen and greed by people who wanted to enjoy
the fruits of inherited success with no vision for the future.
Only when words such as maintenance and vision were put into their
vocabulary, would the continent's economy start pumping, thereby reducing
poverty.
Lack of proper infrastructure has been blamed for lack of development on the
continent.
On investing in Africa, Dr Mbroh said the continent needed to start looking
at its people as potential investors who could then partner with foreign
investors that looked to the outside world for new businesses.
He said this would help attract investment to the continent, which,
according to World Bank reports, was only 1 percent of global investment.
Another economist with Afreximbank, Dr Getachew Telahun, said focus should
be put on manufacturing industries to improve Africa's exports.
"An improved export capacity will enable the
continent to claim its share on the global economy," he said.
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